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's really not catching fire. a lot of defense industry lobbyists are giving republicans heat, they don't feel heat from the constituents because the constituents they think want to see real spending cuts. americans want spending cuts, they don't want political gains. >> i really do. i think when you look at the poll, americans still want smaller government and fewer services, aka spending cuts. i think this is the white house's big mistake, they're barking up the wrong tree. the only question i have, it is after all republicans, will they hang tough? in your opinion, you're closer to it, will they hang tough? >> i spent all day on capitol hill talking to house republicans privately saying what's going to happen between now and march 1st? they say the house leader has promised them privately they're not going to replace the sequester unless there are real cuts to replace the sequester, nothing else, tax reform, tinkering with the tax code, different kinds of cuts is not going to cut it because house republicans have been promised the sequester is going to happen unless it's a real solid
, the secretary of defense revealed after five months that while four americans died tragically, president obama and hillary clinton were awol and the defense department and the joint chiefs of staff were apparently unable to do anything to save our boys. tough story. we'll talk about it. "the kudlow report" begins right now. >>> first up the big story this evening. the northeast getting pounded with snow. nbc's jay gray is in boston, and that's still expected to be where the worst of it will happen. jay, governor patrick in massachusetts ordered all cars off the road at 4:00 p.m. today. does it look like people are following that order? >> reporter: hey there and good evening from boston. yeah, for the most part it looks like people are complying with that order to stay off the roadways. from our vantage point over the last couple of hours all we've seen are plows, sanding trucks and emergency officials out. that's good news. it means people are listening. they're inside their homes and trying to ride this storm out. look, this may be the hardest-hit area in this blizzard. forecasters saying we
your mouth, with fixodent. the adhesive helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. >>> look, you can never be complacent about anything as big as wrenching economy that is still europe. i said they're not impacting us so far, but the measures put in place last year is still working. meaning that europe has shown a degree of stability and i don't want anyone to sell our stocks because of the declining economies there. that would be spain and italy as well as a potential for a real plunge that no one is looking
years, evenly split between domestic and defense or nondefense and defense. would that be such a bad thing or should financial markets and others watching this program say, that's okay. we can take those cuts. >> it is not so much a bad thing, it is a stupid thing. what they sr mindless senseless akos the board guts in areas we don't have to focus on right now. what we need to focus on are the entitlement programs on the cut side. and besides, no business guy watching this show ever balances their budget by making across the board cuts. they go in and make cuts where you least adverse effect on productivity. that's what we are not doing. we are just doing stupid easy stuff. >> senator, on entitlements, what exactly do you want to see done? people -- mitt romney ran your party's nominee last year, ran saying we need to shift to a system where we pay per person. obama called it a voucher. are there other things we should do? >> i tell you, 18 years in the senate, we tried desperately to do something with healthcare. we had a good bipartisan group. we met once a week. and the reality is
. there were some who did. but you seem to be going with the defense that we've heard before, which is essentially, these were opinions, they might not have been good opinions, in fact, they were terrible, but nonetheless, that's all they were. fair to say? >> that's what they were. they were the opinions of s & p, reached at a committee level, cdo by cdo, and they were indeed identical opinions, if they had to be, with at least one other rating agency. because the cdos had three rating agencies on it. >> when the government says these were false representations on the part of s & p, they knew better and simply continued to do this because it was such a gravy train for them, notwithstanding $13 million in fees here, but larger case, what's your defense? >> the defense is that it's not true. the defense is that for all the internal debates, and for all the late night e-mails, the government read 20 million pages of e-mails, and you've seen the best that they can cull out of it is here, that for all of that, what was going on was an organization trying its best to come out with answer
, it isn't good enough. i understand defense spending was down so ramp it up to 1.5%. still terrible. to me all of these arguments just fall flat when we can't get the horsepower the country's numbers to be better and that's with a small positive win on housing which at some point in 2012 hit its infliction point from taking away to adding into gd gdp. >> the issue that you have here -- the issue that you have here isn't the economy is at escape velocity. you're not where the u.s. economy is growing at 3% to 4%. >> let me interrupt you because we have the number on visas. 182 a share is where we're reporting. 182 a share compares to an estimate of 179. the earnings on the bottom line better than expected. here is revenue. 2.85 billion, also better than expected because it was 2.82 billion which was the estimate. vite visa is out and the stock trades up in the extended hour. 182 on 2.85 billion in revenue. >> very positive. >> let get reaction on the visa numbers. joining me to talk more about that in terms of reaction is gill laurier of webbush. thanks for seeing you. >> thanks for having m
spending on defense really collapsed and helped bring down yesterday's gdp. >> yes, it did. >> so all the liberals are saying see, we told you so, if you cut spending, you're going to ruin the economy. do you believe that? >> no, not at all. government spending is taxation. milton always said it. the government redistributes resources. you can see it really clearly. two-person world, farmer a and farmer b, if farmer b gets unemployment benefits, who do you think pays for them, farmer a? you know, government spending is taxation. the reason we have the great recession is because of the government spending, not in spite of it. >> follow-up. it would be bullish for economic growth. >> yes, it would. >> but this is the argument i get. it shows up as a negative in the gdp accounts. at least some of it. >> you're right. >> so what do you do? do you just go on ahead and cut government spending? and let the gdp accounts do what they're going to do? >> the gdp accounts will grow better doing that. that's just the direct effect of spending there. but imagine if we had 100% of gdp on government
's the only way we'll get the kind of defense cuts that we really need to get and we need to take our medicine. >> what i'm hearing is you disagree with the president and you're saying take the $85 billion now and sign on to as per the law just stop belly aching, you'll have $1.2 trillion of budget cuts over the next ten years. that's going to be law. and you're saying the president go on ahead and do it and stop belly aching. >> no, that's not what i'm saying. what i'm saying is -- it's not that i disagree with the president. it would be xwragreat if he cou come up with the solution. but that won't happen. we don't have the leverage anymore. the fact is we're probably going to go over the cliff. i think any deal that he could negotiate with the republicans would actually be worse from my point of view as a democrat than going over the cliff. because we're never going to get the kind of defense cuts that are envisioned in the sequester if you negotiate a deal with the republicans. >> senator hutch in-so thinson,s have dire consequences when we cut spending. in his book, we don't have dire cons
by the end of the year. >> in fact. the gross domestic product contracts. defense spending and defense inventories were down. big companies reported earnings this week. amazon fell short. and ford beat expectations but showed weakness in europe. boeing said it's top priority is to fix the battery problem on its dreamliner. some are worried about what washington may do. the hardest thing in the business today is that things don't work. and they do things for non economic reasons. >> meanwhile blackberrying the now ten will be it. it comes with 10,000 apps. you only need to carry one phone for personal and corporate use. >> yet, there is a black bearry balance feature that lets a company put their apps and wall paper in a segregated think in a sandbox and you can't see that without a password. >> it has been an extraordinary week. we have dwo two of the smartests in the world joining me. allen blinder is joining me and former vice-chairman of the federal research and shore auth "after the music stops". it is good to have you on the program. >> so much to discuss. allen we got the employm
.e.c. defense lawyers, and that's where the problem starts. you know, if you have someone like mary jo white or harvey pitt who used to defend merrill lynch and you're not expecting them to make decisions that impact their ex-client, clearly they can't do that. you can strike a balance and have somebody with experience. for example, a -- >> they should be able to do it, shouldn't they? they are fighting for the law so they should be able to do it and should be able to recognize right from wrong. just because they defended a firm on wall street doesn't mean that they are lying? >> no, maria, but very clearly if your ex-client has paid you hundreds of thousands of dollars to defend it in the past, i think it's going to be really problematic for that person to be objective on the decision. >> that's a good point. >> certainly we don't question the integrity of a mary jo white. >> no way. >> but you have to say that the optics are not great if you have a person who is chairing the agency who has those kinds of conflicts, especially as andrew points out if it comes to a very high-profile case tha
and bacteria. try fixodent. it helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, forget it. >> welcome back. a bad open and better finish. bob pisani wraps up the day that was. >> a lot of efforts to mastermind a top here and didn't amount to anything. take a look at the dow jones industrial average. heavy selling at the open. the futures prior to the open fairly flat, but they sold right into the open for the first 40 minutes and didn't really amount to much, fractional decline in the dow jones industrial average. the euro weakened dramatically. mario draghi came out and said he expected inflation to fall and did not give a particularly optimistic outlook about the near term economy there. had problems in europe's sectors. big leaders and housing stocks, biotech stocks and materials and energy all weak throughout the day. how about some of the retailers. pretty good numbers from the retailers considering there was a lot of discounting going on. gap raised their guidance. profit taking for some concerns for february overall. macy's also had v
in there. unclear whether they'll mount any sort of defense to this deal and say we want more. but something to watch closely. as for the deal itself, the biggest cable company in the world. about 25 million customers. i think bigger than comcast at this point. obviously a huge footprint with which to negotiate, not only with programmers, but the i.t. services and everything else. that's some of the synergy numbers we're talking about there. it's a typical john malone deal, one would argue, for this kind of environment, where investors seem willing to at least embrace a levered equity. there's john. levered equity story in what is a core market. free cash flow accretive right off the bad. shareholders own 36% of the combined company. you know, there's just a lot here. as i reported yesterday, they were back and forth for quite a long time, in part because the prices were moving all over the place. virgin media shares actually shot up. they broke apart. they were able to come back when liberty stock prices also started to follow up. look at that move up. how could you want more
. >> i'm inclined. i would think it would get a little more defensive and i think it will hit real resistance there and then back o.every time it backs off there's always plenty of buyers around. so far. >> get home safe, my friend. >> that will do it. we'll go out mid-range and call it as the markets in new york, boston, all over the northeast are getting ready for the blizzard. all of you get home safe if you haven't already. the second hour of "closing bell" under way right now with maria bartiromo. >>> and it is 4:00 on wall street. do you know where your money is? hi, everybody of welcome back to the "closing bell." a stormy "closing bell." i'm embroemo. t the s&p posting six straight weeks of gains for the first time since 1971. see how we're settling out on wall street. the dow jones industrial average tonight up about 41 points, a quarter of a% higher at 13,984. s&p 500 picked up 7.66 points and the nasdaq composite the big winner on the ses, technology in the lead, up 27 points on nasdaq at 3192. last trade there. the dow couldn't push high enough to make it a winning week
, defense, nondefense. i don't think that's a responsible position. cbo just indicated the economy is improving but slowly. we should not put a break on that. we shouldn't go over this cliff either. >> mr. boehner put out a statement saying that president obama did and cuts and reforms that protect our national defense. what he is saying there doesn't square with what you just said. you said that the republicans want the cuts no matter where they might fall or how. he doesn't seem to be saying that, though. >> that's what their position is now. they said senator coburn said let it happen, eric cantor said let it happen. the proposals they passed through the house never could be considered effectively by the senate. they were drastic provisions. they knew it wasn't going to happen. they have not responded to the present crisis. i think that's what it is. essentially they are saying let it happen. as to who is responsible for the sequester. the speaker agreed to that. he agreed to that. why are we going back -- >> mr. congressman, we'll have to interrupt because the president is abou
's something to be encouraged by. we actually think the opposite. so defense spending dragged down the report. that's not getting any better. the sequestration will likely go through. inventory rebuild, i think that that is premature to expect that. there's still excess inventories in autos, like trucks, for example, and then global trade, which looks considerably fairly weak and will probably stay weak. whereas the parts of the report that were viewed as strong, capital spending but most importantly consumption are likely to be very weak in the first half of the year. we just raised taxes by $200 billion. you hear the president, he wants more tax hikes, he wants more spending cuts. we think capital spending will get better through the course of the year. but what we heard through corporate america is that the near term outlook is still pretty soft. there's parts of the report that people took encouragement from are going to get worse during the first half of the year and that we're not going to necessarily print another zero on gdp. >> everyone sees the markets rocketing on friday who called
, is it a better idea to just have these automatic spending cuts where when you look at defense we don't know what missions are being compromises. we don't know, you know, where the cuts are going to hit in terms of our defense as a country. i mean, is that really the way to do it? >> no, i don't like the automatic approach, but months ago we have proposed a way to reorder those so we don't have automatic spending cuts, that in the first year we have a more balanced approach in terms of defense versus other spending. the president basically has ignored that. he has not come forward with an alternative on that, so at this point it's really up to the administration to do that. we have done that. those views are out there, and they have been ignored, so i think at this point we need the president's budget. we'll move forward on ours which will take into account a revenue level at a lower amount. >> are you -- are you going to get it? mean what, happens if you get rolled over again? >> look, i think we have to make a stand here that revenue is not going to solve our problem. the president wants more m
are going to get impacted by the cuts in defense. first your reaction to what the president said today. listen to this. >> they recognize that the sequester is a bad idea, but what they have suggested is that the only way to replace it now is for us to cut social security, cut medicare and not close a single loophole, not raise any additional revenue from the wealthiest americans or corporations. >> we have an ideological cass many here. >> the president wants more ref, new senator. what about that? >> here's the thing. you've got a president who is not willing to lead or save social security or save medicare. they are both bankrupt. social security spends and gives out more than comes in. medicare gives out $3 for every dollar that comes in and he's taking them off the table and accusing republicans of wanting to cut them. we're the ones who want to save the entitlement programs, but they will only be saved by reforming them. he takes them off the table and says oh, let's go squeeze more money out of rich people. it really -- it boggles my mind that we could have elected a president t
see a sharp drop in federal defense spending and big inventory swing. those are factors that caused us to have a small negative gdp growth last quarter. i think particularly the federal defense spending is a harbinger of what might happen if the sequester takes effect. the cuts that no one wants to see happen, would restrain government activity, would be harmful for the economy. we'd like to have a smarter approach to relieve the sequester. >> so finally, in your view, was that just a taste of what another sequester could be like? >> well, as you know, the sequester hasn't started. and we have made proposals to congress to eliminate the sequester. the sequester can certainly have a significant impact on the economy. what we saw in the fourth quarter gdp report was just a big effect on defense spending. >> right. >> possibly advanced planning because of sequester by private contractors and other factors going on. the sequester would also affect nondefense spending, and that could also have a significant impact op the economy. >> dr. krueger, appreciate your time on a busy day, for you a
employs. >> this is the worst defense i have heard. this is an obama-type defense on spending cuts. next thing you want is revenues to help the post office go through. what's go pac? i'm sorry. >> it's a teachable moment as guy talked about. this is what happens when you allow the government to come in and run an industry that in treery is private. it is not. any decision the post office wants to make to become more efficient, they have to say mother may i. in this administration you see whether it's the epa that wants to continue to regulate the energy industry, trying to do more in the car industry, trying to take over the health care industry. >> can i just interject? you see the problems between government has mother may i decisions over the economy. >> it has nothing to do with the obama administration. the problems of the post office go back way before president obama existed. the reality is it's an inefficient organization that has to answer to the government to make decisions. the problem is people aren't using the post office. >> let me make a quick point. first of all it's not
for, you know, coming under detault. >> that is a lousy defense, though, right? >> exactly. but at the end of the day, going back to, andrew, where you started, which is the talk about this being a demand for a $1 billion settlement versus offering $10 mrl, what it comes down to is putting up that number and saying, that is how the government is holding accountable these firms for whatever you call it, but it's certainly at a minimum what the government is alleging is civil fraud. and i think a lot of people are going to get lost in the fact that this is a civil case because it's an action being brought by the department of justice. >> what is the largest kind of fine that you could have expect? by the way, as a point of reference, the.can -- we hear about $1 billion settlements all it is time by banks. this is a company that in 2011 made $911 million. put knit context. we're not talking about jpmorgan making $20 billion here. jac jacob, what kind of number are you talking about? >> the short answer is we don't know. this kind of action is unprecedented. whatever that settl
in the persian gulf to demonstrate the effect looming defense cuts could have on the military. it will have to trim flying hours and lockheed's fighter jets. billions of dollars in automatic cuts known as the sequester are set to take effect march 1st if congress doesn't delay or cancel them. outgoing secretary of defense leon panetta called lawmakers irresponsible. >> it is difficult to believe, frankly, that congress would simply stand aside, stand aside, fail to make the decisions necessary to resolve this crisis and allow the defense, economy and quality of life of america to be irreparably damaged. >> thou, some health and senate republics have offered a plan to cut the federal workforce and use those savings too void the full 85 billion sequester. a similar plan failed to gain any traction last year. however, will this time be different? mark parkinson, former governor of kansas, ceo, and a real pleasure to have you with us. >> great to be here this morning. thank you. >> we would like you to start by looking at this sequester. the senate and house republicans have floated a plan for
proliferate. ♪ protect your mouth, with fixodent. the adhesive helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. makes it easy for anne to manage her finances when she's on the go. even when she's not going anywhere. citibank for ipad. easier banking. standard at citibank. okay. [ male announcer ] with citibank's popmoney, dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank. >>> people always want help when the market sells off. they want me to tell them what to do to validate their fear, stocks get hammered, investors freak out. they panic. or at the very least they seem to want to panic. they want to be this guy. many don't know what's going wrong. few can easily handle the trauma of big losses. and almost everybody wants some expert to help them figure out the next move. i don't blame them. but you know in all my 31 years in the business, i can't recall a single time where somebody came up to me a
is the majority -- >> the alternative would cost the same million jobs. whether you gut defense or whether you gut domestic programs. it's the same reduction in gdp, the same reduction in expenditures. you can argue about what the federal government should be spending money on, but if you dramatically reduce expenditures at a time of national recession, and i think we're still in a recession, then you're going to see a decline in jobs. it is not an answer to say the house has passed something that they know is dead on arrival in the senate. >> maybe fa doesn't matter right now. is the debt not a priority right now? is growth more of a priority than reining in the debt? >> i don't think they're mutually exclusive. government growth is not going to get us out of this mess. private sector growth is. right now government growth is a drag on the private sector. every day the president threatens to raise a tax or another. as long as the threat of new taxes, huge regulations from the epa hang over the private sector, we're not going to get the growth we need. >> you know one of the biggest drags on fourt
the department of defense is planning to downsize the military as we also conclude our business in afghanistan. do you believe that the large amount of military personnel and other support personnel will flood the job market and increase demand for goods? >> no, i don't think it'll move the needle. and by the way, the army, knave v navy marines, they don't move that fast. i don't think you should look at this issue in a way to be able to make money off of it, though. it's really not a needle-mover. as a matter of fact, it can be negative for a lot of the defense companies as we know and they've been under a cloud because of these cuts. here's one from danny in new york. hi, jim, i have heard you say when considering playing the downside of an equity you would short the stock rather than buy a put. please elaborate on your reasoning on this. danny, i'm so glad you sent me this because if i have created any misperception that i favor shorting stocks, it is completely out of character with all my books and what i used to do at my hedge fund or before i had my hedge fund when i was working for gol
'd say that. >> and we found that the pentagon is saying it too. the defense advanced research projects agency, known as darpa, did its own analysis, and we obtained this internal memo that concludes there is: do you feel vindicated after all these years? >> i don't have any real need for vindication. i know what i've seen. >> that was a pretty big smile on your face, though. >> it is good. it's not bad. certainly, it's good. >> the pentagon is funding more experiments at the naval research lab in washington, d.c., and at mckubre's lab in california. we wondered what richard garwin would think of the defense department's appraisal. "the experiments leave no doubt that anomalous excess heat is produced." >> well, that's a statement. >> you just don't buy that. >> well, i am living proof that there's doubt. now, they can say that excess heat is being produced, but they can't say there's no doubt. all they can say is, they don't doubt, but i doubt. >> if you asked me, "is this gonna have any impact on our energy policy?" it's impossible to say, because we don't fundamentally understand the
create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. ♪ all stations come over to mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. makes it easy for anne to manage her finances when she's on the go. even when she's not going anywhere. citibank for ipad. easier banking. standard at citibank. okay. [ male announcer ] with citibank's popmoney, dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank. >> on the day we found out dell is going private, it is worth remembering, 15 years ago, dell was one of the hottest tech stocks out there. these days you don't want to hear about dell. if it goes public again, it will be more styling with the times. when it comes to tech, yo
amendment expert in abrams is an insight into what their eventual legal defense will be? >> good question. their defense will rest heavily on the first amendment. their defense has always been that they simply provide public opinions and therefore they have a first amendment right to express those opinions without any accountability, without being answerable to anyone because they have that absolute right. so retaining an expert, a highly regarded and even renowned expert in this area, i think, is a clue to their defense. but that defense is diminishing in its strength because courts have held that, in fact, under the circumstances that they issue these opinions, the first amendment does not provide them with the kind of blanket absolute immunity that they have enjoyed, they claim. and so i think that they will eventually be held accountable. whether others will be sued, i can't really say because i don't speak for the department of justice. certainly if there is any equity, the others will be held accountable as well. and the strategy may be to go after s&p, the e-mails are devastating.
is on the defensive after allegations that its top property markets received secret payments on a regular basis since 1997. spanish conservative is deny the allegations and have threatened to sue the newspaper that published photos of the secret accounts. a new order into his finances has been called and an emergency hearing is set to take place on saturday. the prime minister is expected to announce his first stimulus package as early as today. as the recession in spain continues to deepen, more than 25% of spanish laborers are unmroit. joining us now, nickace spirro. despite the continued woes of the spanish economy, pmis have bounced slightly off their lows this morning. despite the fundamentals, you look at the bund market and there's enormous difference in sentiment. is that still going to happen because of differing yields between spanish yields and german yields? >> i would expect it to. spain in the markets right now are existing almost in the powder worlds. there is a striking disconnect between -- between sentiment and fundamentals. certainly, i think one of the most glaring examples of the
did over-shadow strong housing data. it followed unexpectedly strong defense spending in the fourth quarter. maybe some positive news there. tina, from citi, she's been taking a look at what the president has to do, i guess, in his second term or what he's expected to do. what i loved was your point, how did you put it? fiscal deals or compromise tend to disappear in washington like -- >> the bermuda triangle. >> you don't have high hopes for compromise here? >> no. most politicians in the developed world, and the u.s. very much within this, it's not going to see -- i'm not going to provide fertile ground for grand bargains. politicians like to talk about it. this is their way of saying, we're ready to do a deal, but it's those guys, they won't compromise. we think we'll see more of this piecemeal last minute compromises. >> and we're fating critical issues in the u.s. people might be aware of the fiscal cliff, but there's the continuing resolution, there's the sequester that goes into effect march 1st. should we hold our breath for compromise here? and, again, the issue is being fo
of strategists this year who are, i would say, aggressive to -- i mean, mixed in terms of their defensive nature regarding sector allocation, that they might step on the accelerator later on in the year once we get past some of the d.c. deadlines and go more cyclical, go more economically sensitive. would your advice be to err on the side of aggressive? >> i think it's -- there's no better time to do it than now. the reason is that, you know, i think the market looks through a lot of these events. what i'm focusing on is growth for the second half. and like i said, cap x, i think that's a strong theme. we're starting to see companies signal they're going to spend some capital. that translates into growth in the second half. why not buy these stocks while they're still cheap instead of waiting until they run up a little bit. that's my accepsense. i think the short-term move, it's a risky strategy, because the market could get ahead of you in that time that you wait. >> right. how about if you're looking for signs that this is all for real. should we expect the normal correlation between what equi
as a company. swe sequestration is at the top of everybody's mind. we have our aerospace defense conference this weekend, the big topic is why are defense multiples at all time lows? the answer is people can't move or do anything until we figure out exactly what's going on in the defense sector. >> one of the other things we see as a positive, the pickup in housing actually affects a lot of small business. >> sure. >> small business is the engine of job growth. >> we will discuss it more. >>> we have pimco's bill gross on why the american credit bubble is like a dying star next on "squawk." >>> welcome back on this wednesday morning in the headlines. saturday delivery of the mail is coming to an end. the postal service is announcing about 10:00 a.m. this morning, saturday delivery of mail will end in august and worth packages will still be delivered six days a week. the savings of all this, about $2 billion. dow component home depot hiring about 1,000 workers for the busy spring, the number is 10,000 more than home depot hired last year at this time, 80,000 hired. and you can count those nu
and the defense cuts. so if that part of the sequester, remember defense is half of the sequester goes through, we could be looking at much slower gdp growth. now, our forecast for this year is 1.5% positive. that's maybe about half a percent lower than consensus, but whether we're right or the consensus are right, both numbers are terrible. we're not at trim line 3% growth. so i think that the politicians are start to go freak about what the implications are for smarter growth, based upon the full complimentation of this sequester. >> and, like, we will be thrilled to have 4% or more growth. now it's like 2 point something, that's okay. but certainly for less. >> there are two key drivers here. there was an economic impact from sandy, we felt, in the fourth quarter and the fist quarter. that will become a tailwind in the second quarter as we start to rebuild. the other issue is with washington. at what point do we get through all the nonsense? our view is that something happens positive. we're opt misters and that gdp growth begin toes ramp over the back half of the year. per se, we don't know th
participation. look at the retail fund flows. managers have had a lot of defense in the portfolios and a lot of cash, and they don't want to miss it and fall behind early in the-year. there's chasing, and we don't want to get carried away with that. >> you like the u.s. still. said we'd hit new highs. do i want to be exposed around the world, talking about the hot sprts, the brics, emerging markets, where do we stand? >> long-term answer, lock up money for five years, go the places they are going to grow, u.s. and the emerging markets. japan a europe is getting a bit of a rally because they are doing things cyclically and japan is trying as well, but not with my clients' money. i want to stick with a cyclical storey. >> sell more than an idea if you want me to put money in europe. things are troubled there, no in. >> totally agree. i want to be underweight. somebody else's money is going there. i think ecb will lower rates some more, and i think the financial stresses will ease, but europe is in a recession. hopefully they come out of that by the end of this year. >> good stuff. bob, always
. this last quarter was low, but mine us 0.1% because of defense reduction. other parts of the economy are doing well, especially the consumer. >> let's talk about what took us here. bank of america doing very well, verizon, at&t. you had the financials and the telecom stocks as the leadership groups. merck was down 2%. exxon down. three dow stocks were actually down. what happened there and what are you seeing at the end of the kay? >> finally seeing the laggards catching up and telecoms have done okay during this period, but i think what uruguay seeing is the overall economic data with the exception of the weaker gkp number. all the other data was very strong and all the companies are pulling up with that. >> and then with that, swing it around, what happened there. dts. what happened to that today? so hyped, right, warren? >> we're right at the 14,000 line right now. the dow jones industrial average has just dipped below 14,000, so remains to be seen. we have two minutes to go here to find out if we'll close above it. if you don't have leadership or you don't have participation in t
to cut defense. some of them actually are willing to do that. you are, i guess. but i mean, i think that's really the issue. the reason why they constructed this is so it would hurt everybody. i don't think it's a good idea. but my whole philosophy is i don't think the deficit is our top issue. i think if you're really concerned about the deficit we should have gone over the fiscal cliff and cut the deficit that way. but if you aren't concerned about the deficit, if you think job growth is the most important thing and growth in general, then i don't think you should either cut taxes -- i don't think you should raise taxes or cut spending right now. i think you should focus just on stimulus. >> what they should do is slash across the board all these goofy departments, just really rip into them. and along with that pro-growth tax reform. especially pro-growth business tax reform. and then you'll have the kind of growth that keith is talking about that would actually solve the financial position. >> keith wants growth in general. i don't want growth in general. i want private sector growth.
with big picture economic factors. when the economy is heating up, the defense of consumer staple stocks usually it is out the big rallies in more cyclical names. those who do better in an improving economy. we don't care about blame. we care about winning. and stocks that can't hunt, stocks that cannot win even in a major rally, those are stocks that you need to think twice about owning. here's the bottom line. after a major short term rally, you want to do some trimming of those big winners. pare back your momentum names and last but not least, please sell the losers that got left behind. [ indistinct shouting ] >>> you're watching the "mad money" rally playbook where i'm teaching you the best advantages to take advantage of a market that's up big over a short period of time. let's just say you're tuning in and i'm wounded by the cold shoulder you have shown me. i know you did it as an attempt to hurt my feelings. it worked. i hope you're happy. tv personalities we have feelings too. but let me go back to business. most of my rally playbook has been about what you can do to benefit fro
there by cutting defense. and you're not going to get there by raising taxes. you've got to address the problem which is entitlement spending. >> here's one of the major problems with regard to medicare. and that is rising health care costs. already 18% of total gdp. seems to me the best way to control medicare and medicaid, those are the ones out of control. social security is not out of control. it's medicare and medicaid -- >> but it hasn't been fixed. >> the best way to deal with medicare and medicaid is to get health care costs under control. what you want to do is basically use the bargaining of medicare and medicaid so that providers move from a fee system, a fee for service system to a fee for healthy outcome system. wouldn't you agree? >> well, absolutely. as you know, that's the proposal being pushed forward by dartmouth your alma mater. has a lot of viability to it. but it's easy to say but it's hard to do. the point is, however, that you've got to have a president who's willing to step up on the issue of medicare specifically and say we're going to try to control these costs and not
1,200, it's 940, 26% above this level. you think you can buy some japan. buy some defensive. there were stocks that went up even during the depression so you want to own your health care and your food and own your beverage and global gorillas that have exposure to the underlying global growth. that's where i think you can hide. master limited partnerships. you'll get yield. buy bce, bell canada enterprise is, the thing yields 5.2%, versus flat a year ago. >> thank you, guys. >> peter, i'll see you next time, and the next time you leave california, don't come when there's a blizzard coming to town. >> you guys greeted me with that. wasn't my fault. >> have a good weekend. stay safe. >> since storms get names these days, why not rallies or selloffs, so we asked you, our twitter friends, what should we call the trooent rally. maria, what do you think here? >> well, j.j. is calling it the in spite of apple rally and my tweet is it's ben's rally. >> or just call it ben. >> one-word names, right. >> another one says we should call it the maria rally. markets are rallying in antici
to sequester either. you have pro defense for republicans saying this is going to impact bases and contractors in my district. that is something that dove tails with the president's argument. >> john harwood at the white house. thank you. >>> this didn't take long. home prices back on the rise. and banks are seeing a surge in home equity lines of credit. should w worried and what are homeowners spending the money on this time around? diana is in washington with some of the answers. hi, diane. >> hey, sue, you're right. it feels like nano second. home sales go from boom to bust and now we are tapping into home equity lines of credit again. j.p. morgan chase reports a 31% jump in helocs. not only that but the amount of money we are borrowing against our homes is up as well. edging up towards $90,000 on average. how is this possible in a senior executive here at wells fargo says it is not just the increase in home values doing it. it is an increase in consumer confidence. that is, folks are feeling better about their ability to repay the loans, so they are taking them out. now of course the big q
. that's a change of the change. and then the defense piece which seemed to have some anomalies towards the end of the year, so i don't think that's so much of an issue. i'm kind of where austin is. if you look at the year over year gdp growth it's 1.5%. the year over year kind of smooths out some of those volatility issues. that's below trend. i guess right now, trend growth, gdp probably around 2%. it seems like when we're hitting two we were getting jobs numbers in the 150 to 170 range. so we're probably a little below that right now. >> i think trend is probably still 2%, 2.5%. when all the data come in, come out. the key thing in this report is the benchmark revisions. once a year, the bls benchmarks this survey based data. actual employment counts for unemployment insurance records. >> you mean rather than the political -- >> rather than -- >> this is -- this is a pure count of jobs based on the actual tax related -- >> actual number. we know of march that's going to be revised by 400 k. it's likely to revise the whole rates of growth since then. >> i want to stop you there. becau
want to take it back now the defense? >> no i did run out of battery tweeting and problem blocksed you in tweeting, verizon problem. the whole thing was a great time. an iphone nightmare. >> a quick check -- a quick check, i should say i on research in moe motion or blackberry, since we are on the subject, trading higher once again, getting closer to the 52-week high mark. got an upgrade from wells fargo following the upgrade from bernstein earlier this week. last couple of new board members who are interesting figures. the former verizon cto and the former sony ericsson ceo join the board of blackberry. so, interesting -- this stock is having an amazing launch. >> i mean, they are -- the ceo days, they were regarded as being a company in canada, listening only to themselves, bring new people in. it is funny, luke apple and think all the companies that reported this quarter, three of them, great american company, grate innovation over time what do they do? immediately, they announced an even bigger buy back, raised that dividend, 3 m underperformed a bunch of years it has come back. >>
where we got the negatives was from the government, from defense, and you know, largely from inventories. that's going to turn around. i think the inventory decline was just an insurance policy. >> okay. >> that's all. >> rick, can you tell us if the bond market cares about this? reassessing the fourth quarter, you could argue, it's a rear view mirror issue. >> yeah, you know, it may as well be. because, actually, we decreased a basis point yield. we've rallied a bit in treasuries. and the preopening equities haven't budged at all. so, my guess is, there's a couple ways to look at it. you know, 157,000 was a loss of momentum. a lot of the positive growths could be attributed to the adjustment process in jobs. and housing, you know, i'm sorry, i think we for sure hit the inflection point in the rear view mirror. but i don't think i could ever use the word excellent. so i think it's a semantics issue. you know, it's relative growth. it's change of rate. you know, all that is improving. but we're nowhere near the type of growth space we need to be, and i think that the market is very sensit
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